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AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF SALINA, KANSAS, ESTABLISHING A STAR BOND PROJECT DISTRICT WITHIN THE CITY AND MAKING CERTAIN FINDINGS IN CONJUNCTION THEREWITH

WHEREAS, the state of Kansas (the “State”) desires to promote, stimulate and develop the general and economic welfare of the State and its communities and to assist in the development and redevelopment of eligible areas within a city or county, thereby promoting the general welfare of the citizens of the State, by authorizing cities and counties to acquire certain property and to issue sales tax and revenue (STAR) bonds for the financing of STAR bond projects pursuant to the provisions of K.S.A. 12 17,160 et seq., as amended (the “Act”); and

WHEREAS, pursuant to the Act the City of Salina, Kansas (the “City”) is authorized to establish STAR bond project districts within eligible areas of the City, as said terms are defined in the Act, to approve STAR bond project district plans for the completion of STAR bond projects within such STAR bond project district, and to finance STAR bond project costs from the incremental increase in state and local sales revenues derived from the STAR bond project district, other revenues described in the Act, or a combination thereof or from the proceeds of special obligation tax increment bonds of the City payable from such described revenues; and

WHEREAS, prior to the creation of any STAR bond project district the governing body of the City must adopt a resolution stating that the City is considering the establishing of a STAR bond project district, which resolution shall: (1) Give notice that a public hearing will be held to consider the establishment of a STAR bond project district and fix the date, hour and place of such public hearing, which public hearing shall be held not less than 30 nor more than 70 days following adoption of such resolution, (2) describe the proposed boundaries of the STAR bond project district, (3) describe the proposed STAR bond project district plan, (4) state that a description and map of the proposed STAR bond project district are available for inspection at a time and place designated, and (5) state that the governing body will consider findings necessary for the establishment of a STAR bond project district; and

WHEREAS, notice of such public hearing shall be given by mailing a copy of the resolution calling the public hearing via certified mail, return receipt requested, to the board of county commissioners of the county, the board of education of any school district levying taxes on property within the proposed STAR bond project district, and to each owner and occupant of land within the proposed STAR bond project district not more than 10 days following the date of the adoption of such resolution and by publishing a copy of such resolution once in the official City newspaper not less than one week or more than two weeks preceding the date fixed for the public hearing, which publication shall include a sketch clearly delineating the area in sufficient detail to advise the reader of the particular land proposed to be included within the STAR bond project area; and

WHEREAS, upon the conclusion of such public hearing and a finding by the Secretary of Commerce that the STAR bond project district is an “eligible area” under the Act, the governing body may pass an ordinance which shall: (1) make findings that the STAR bond project district proposed to be developed is a STAR bond project under the Act, (2) contain the STAR bond project district plan as approved, (3) contain the legal description of the STAR bond project district, and (4) may establish the STAR bond project district; and

WHEREAS, no privately owned property subject to ad valorem taxes shall be acquired and redeveloped under the provisions of the Act, if the board of county commissioners or the board of education levying taxes on such property determines by resolution adopted within 30 days following the conclusion of the hearing for the establishment of the STAR bond project district that the proposed STAR bond project district will have an adverse effect on such county or school district; and

WHEREAS, upon the creation of a STAR bond project district pursuant to the Act, the City may propose to undertake one or more STAR bond projects and shall prepare a STAR bond project plan, which may be implemented in separate development stages, in consultation with the City's planning commission; and

WHEREAS, the City Commission has heretofore adopted Resolution No. 15-7193 on March 30, 2015, which made a finding that the City is considering the establishment of a STAR bond project district pursuant to the Act, set forth the boundaries of the proposed STAR bond project district, provided a summary of the proposed STAR bond project district plan, called a public hearing concerning the establishment of a STAR bond project district for May 18, 2015 and provided for notice of such public hearing as provided in the Act; and

WHEREAS, on May 18, 2015, the Secretary of Commerce made a finding that the proposed STAR bond project district is an “eligible area” under the Act as a “major commercial entertainment and tourism area” as defined in the Act; and

WHEREAS, a public hearing was held this date, after due published, delivered and mailed notice in accordance with the provisions of the Act; and

WHEREAS, upon and considering the information and public comments received at the public hearing conducted this date, the City Commission hereby deems it advisable to make certain findings and to create the STAR bond project district.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF SALINA, KANSAS:

Section 1. Findings. The City Commission hereby finds that due notice of the public hearing conducted on May 18, 2015 was made in accordance with the provisions of the Act. The City Commission further finds that the proposed STAR bond project district is a “STAR bond project” as a “major commercial entertainment and tourism area” as those terms are defined in the Act.

Section 2. Creation of STAR Bond Project District. A STAR bond project district is hereby created within the City in accordance with the provisions of the Act (the “STAR Bond Project District”). The STAR Bond Project District is comprised of one project area.

A map depicting the boundaries of the STAR Bond Project District is attached hereto as Exhibit A, which is incorporated herein by reference and legally described on Exhibit B. The boundaries of the STAR Bond Project District do not contain any property not referenced in Resolution No. 15-7153, which provided notice of the public hearing on the creation of the STAR Bond Project District.

Section 3. STAR Bond Project District Plan. The proposed district plan for the STAR Bond Project District (the "District Plan") is hereby approved. The buildings and facilities to be constructed or improved in the STAR Bond Project District may be described in a general manner as follows:

A mixed-use development consisting of some or all of the following uses: major multi-sport athletic complex, museum facilities; an historic theater; retail uses; restaurant uses; other general commercial development; hotel uses; residential uses; office uses; associated public and private infrastructure; and other items allowable under K.S.A. 12-17, 160 et seq. The STAR bond project district may consist of multiple STAR bond project areas as delineated in one or more STAR bond project plans to be approved for property within the STAR bond project district.

Section 4. Approval of Other Governmental Units. No privately owned property subject to ad valorem taxation within the STAR Bond Project District shall be acquired and redeveloped pursuant to the Act, if the Board of County Commissioners of Saline County, Kansas or the Board of Education of Unified School District No. 305 determines by resolution adopted within thirty days following the public hearing held this date, that the STAR Bond Project District will have an adverse effect on Saline County or Unified School District No. 305, respectively. As of this date, the City has not received a copy of any such resolution and is not aware of the adoption of any such resolution by the governing body of Saline County or Unified School District No. 305.

Section 5. Reimbursement. The Act authorizes the issuance by the City of bonds to finance all or a portion of the costs of implementing the District Plan. Said bonds may be issued to reimburse expenditures made on or after the date which is 60 days before the date of passage of this Ordinance, pursuant to Treasury Regulation §1.150-2 in the maximum principal amount of $1,000,000.

Section 6. Further Action. The Mayor, City Manager, City Clerk and other officials and employees of the City, including the City Attorney, City consultants, and Gilmore & Bell, P.C., Bond Counsel, are hereby further authorized and directed to take such other actions as may be appropriate or desirable to accomplish the purposes of this Ordinance.

Section 7. Effective Date. This Ordinance shall be effective upon its passage by two-thirds of the City Commission and publication one time in the official City newspaper.

PASSED by the City Commission of the City of Salina, Kansas on June 1, 2015 and APPROVED AND SIGNED by the Mayor.